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How can homeowners avoid foreclosure?

On behalf of Law Offices of Charles A. Maglieri posted in foreclosure alternatives on Friday, April 24, 2020.

Although the dark days of the Great Recession are far behind us as a nation, America still sees an alarming rate of people losing their homes. One of the leading reasons is foreclosure, which happens when banks and other loan-granting organizations claim a property because of a default on a mortgage. How can this be avoided?

What are the reasons people may face foreclosure?

The laws in Connecticut and other states prevent the arbitrary seizure of property, so foreclosures should only happen after several months of no payment and no communication from the borrower. Debt, job loss and new expenses like children may lead to this poor financial position.

How can people avoid foreclosure with the bank?

Interior designer collapses into Chapter 7 bankruptcy

On behalf of Law Offices of Charles A. Maglieri posted in chapter 7 on Wednesday, April 8, 2020.

The dream of starting or running a business is a big part of being in America. The nation, after all, has a history of being built on big risks that either paid off or did not. But if an enterprise becomes so logged with debt that it is time to sell off parts of it, there is often just as much work to do as there was when business was booming.

A recent bankruptcy filing by an interior design firm in a Connecticut district court has turned up a list of creditors numbering more than a thousand. The filing disclosed that the company estimated between $10 million and $50 million of debt while accounting for less than $10 million in assets.

Connecticut's government considers its own debt diet

On behalf of Law Offices of Charles A. Maglieri posted in debt relief on Friday, March 27, 2020.

People aren't the only legal entities that can end up in debt. Companies and corporations, even those that have been in business more than a century, can fall on crippling hard times. In fact, governments of states and countries can also end up in debt that can cost them and their citizens for generations.

Connecticut has been working through its own debt issues, preparing to borrow more than $1.5 billion to cover operating costs and a variety of other projects. The governor has attempted to lower this amount, saying the Constitution State needs to go on a "debt diet" that would take more than a third of the money out of this plan.

Major sports retailer will close Connecticut stores in bankruptcy

On behalf of Law Offices of Charles A. Maglieri posted in chapter 11 on Friday, March 13, 2020.

Bankruptcy is designed to be the opposite of permanent for an individual or a business. Some types of bankruptcy filings allow people and entities to retain many of their remaining assets, while others force a liquidation of all but essential remaining property. When it comes to businesses, the choice is up to them and their creditors.

Chapter 11 bankruptcy, which is the most common type of commercial bankruptcy, is a filing that usually comes with or after an agreement between the filer and the organizations that has loaned or funded to it. Chapter 12 bankruptcy is a rarer filing reserved mainly for family-owned and other smaller businesses.

Major retailer affects Connecticut locations with bankruptcy

On behalf of Law Offices of Charles A. Maglieri posted in chapter 13 on Thursday, February 27, 2020.

Bankruptcy may feel like financial failure, but as they say in boxing, the round isn't over until the bell rings. And bankruptcy is far from a final bell. It is often a timeout designed to help people and businesses get themselves in order.

The type of bankruptcy that is best often depends on the levels of debts involved and an entity's hopes for the future. Chapter 7 bankruptcy, or liquidation, may be best for people with a lot of debts and no real assets to protect. Chapter 13, often called reorganization, may be best for people with fewer debts or a steady stream of income.

Homeowners have options to avoid foreclosure in Florida

On behalf of Law Offices of Charles A. Maglieri posted in foreclosure alternatives on Wednesday, February 12, 2020.

Foreclosure is the last thing that a homeowner wants to hear. It can feel like a lifetime of investment in a property is at risk and about to disappear if a lender wants to reclaim a home or commercial location. But it is not as easy for the dream to die, and there are options that can prevent the loss of the property.

The process of foreclosure generally begins with a sheriff or a marshal, the law enforcement professionals who are responsible for asset forfeiture at the local and federal levels. This person or agency will serve homeowners with a summons, which generally brings people to court to answer a complaint that could lead to foreclosure. A copy of the complaint should also be included.

When does Chapter 13 bankruptcy make sense?

On behalf of Law Offices of Charles A. Maglieri posted in chapter 13 on Wednesday, January 29, 2020.

Maybe you're dealing with old debts that you were never able to clear. Maybe no income you're able to generate can handle the expenses of interest on loans. Either way, you may be eligible for Chapter 13 bankruptcy.

What's the difference between Chapter 7 and Chapter 13?

How do credit repair services take advantage of people in debt?

On behalf of Law Offices of Charles A. Maglieri posted in debt relief on Wednesday, January 15, 2020.

It can feel like the whole world is against you when you have to struggle with debt. Creditors may be harassing you, and a bank may even be calling about foreclosure. At times like these, you may reach out for any help you can get. But is it the right choice?

How do businesses take advantage of people dealing with debt?

Banks and financial services companies, often working without full regulation, may advertise credit repair services or offer to represent people in negotiation with creditors. Some of these companies may even acquire a list of debtors from reporting services or lenders and attempt to market their services directly.

What can go wrong with a credit repair service?

How sickness is driving Americans bankrupt

On behalf of Law Offices of Charles A. Maglieri posted in chapter 7 on Sunday, January 12, 2020.

Most people are only one or two paychecks away from financial disaster -- and they simply don't have the resources to handle a major medical disaster, even if they have insurance. The financial strain of chronic or sudden illness is driving many ordinary Americans straight into bankruptcy.

This isn't particularly a new problem, but there are signs that it is a worsening one. Many people point to the decision of a Nobel prize winner to auction off his medal in 2015 to pay for his medical bills as a signal that the spiraling cost of illness in American is out of control -- but it's really been that way for a while. Back in 2001, approximately one-half of the debtors who sought bankruptcy protection cited medical debt as the reason. Just a few years later, in 2007, a whopping two-thirds of bankruptcy petitions involved medical debt.

New Haven drugmaker filed for Chapter 11 bankruptcy before moving

On behalf of Law Offices of Charles A. Maglieri posted in chapter 11 on Thursday, January 2, 2020.

Bankruptcy is a hard prospect for any person or business to consider. It's not easy to look at the process as a way to start over because it often feels like failure. But a new start is exactly what the process is supposed to be, especially when businesses want to stay on track as they face their debts.

Chapter 7 is perhaps the most common type of bankruptcy for individuals unable to handle their debts with any other methods. Often called liquidation, a bankruptcy under Chapter 7 often appoints a trustee to sell off available assets and make deals with creditors to forgive any debt that the profits of these sales cannot cover. But businesses often cannot leave their assets behind.